Veba Reworks Merger Terms,
To the Benefit of Viag Investors

Handelsblatt

Updated Dec. 10, 1999 1:22 a.m. ET

After an independent audit of Viag AG and Veba AG, the terms of their merger to form Europe's third-largest utility have been revised to be unexpectedly strongly in favor of junior partner Viag. The revised merger terms give Viag shareholders a 35.5% share of the new group to Veba's 64.5%. The original split was 67% to 33% in Veba's favor. A Viag shareholder will now receive just 2.5 shares in the new company in return for one Viag share, compared with 2.8 shares under the original merger terms.